Reserve Proof
Collateral intelligence, not collateral narrative
Asset-backed securities require more than a backing story. They require documented claims, independent verification, ongoing monitoring, and controlled disclosure. This is the proof architecture.
Claim Documentation
The first layer of reserve proof is documenting what the issuer claims to hold, pledge, or control.
›Asset description: type, quantity, location, custodian, and legal status.
›Pledge agreements: signed documentation linking specific assets to the offering.
›Title evidence: deeds, certificates, assay reports, or custody receipts.
›Chain of custody: documented transfer history from acquisition to current holding.
›Encumbrance disclosure: liens, UCC filings, competing claims, and priority status.
Independent Verification
Claims without verification are narratives. This layer converts claims into evidence.
›Third-party auditor attestation: independent review of reserve claims.
›Custodian confirmation: direct custody receipts from identified holding institutions.
›Assay and grading: independent quality and quantity confirmation for physical assets.
›Lien search: UCC filing verification, title search, and encumbrance confirmation.
›Timestamp and hash: cryptographic anchoring of verification documents to immutable record.
Ongoing Monitoring
Reserve proof is not a one-time event. Status must be maintained and reported continuously.
›Periodic re-verification: scheduled custodian confirmations and auditor reviews.
›Material change alerts: automatic notification when reserve status changes.
›NAV recalculation: asset value updates reflected in reporting and investor communications.
›Collateral ratio tracking: coverage ratios monitored against offering terms.
›Exception handling: documented process for reserve shortfalls, disputed claims, or custody changes.
Disclosure Controls
What investors see, when they see it, and how it is formatted must be controlled and auditable.
›Investor-facing reserve reports: formatted, versioned, and delivered on schedule.
›Material event disclosures: triggered by predefined conditions, not discretionary timing.
›Document access control: role-based visibility for different investor classes and regulators.
›Audit trail: every disclosure, delivery, and acknowledgment recorded.
›Regulatory submission readiness: formatted for SEC, FINRA, or other authority requirements.
SBLC — SWIFT MT-760 / UCP 600
Standby Letter of Credit as a financing and reserve instrument
A Standby Letter of Credit (SBLC) issued via SWIFT MT-760 is one of the most versatile instruments available for moving a real-asset digital securities offering forward. The platform supports SBLC documentation, escrow integration, and on-chain anchoring across four use cases.
Reserve Enhancement
An SBLC from a prime bank can serve as an additional collateral layer alongside physical gold holdings — providing a bank-backed financial guarantee that strengthens the proof-of-reserve position for institutional counterparties.
›SBLC issued via SWIFT MT-760 (bank-to-bank, Brussels SWIFT system).
›ICC UCP 600 / ICC Publication No. 758 compliant — globally recognised standard.
›Irrevocable, unconditional, and transferable — no set-off, no deductions.
›Payment obligation enforceable under English law in the Commercial Court.
›Cryptographic hash of SBLC instrument anchored on-chain for immutable proof.
Gold Procurement Financing
Issue an SBLC to a physical gold supplier (e.g. APMEX, Brink's-custodied dealer) as the payment mechanism for acquiring vault-ready gold. The SBLC substitutes for an immediate wire, enabling custody delivery before full capital raise.
›SBLC issued at offering size or tranche size from a participating bank.
›Supplier ships/vaults gold against SBLC; custody receipt issued to the platform.
›Reserve proof layer records custodian confirmation and assay documentation.
›Draws down SBLC only on verified custody delivery — no cash until gold is confirmed.
›UCC-1 financing statement filed against gold lot upon SBLC draw.
Monetisation / Working Capital
An existing SBLC can be discounted or leased to provide operating capital for the issuance programme — bridging the gap between platform launch costs and first closing proceeds.
›Discount rate: typically 40–60% of face value with a prime trade finance desk.
›Lease/rent: 5–15% annual fee to borrow an existing BG/SBLC as proof of funds.
›Proceeds used for: custodian onboarding fees, legal counsel, compliance costs, technology.
›Subordinated to the DIGAU investor position — does not impair reserve coverage.
›Platform treasury records SBLC monetisation as a structured facility, not a token distribution.
Subscription Settlement Guarantee
An SBLC can back investor subscription commitments during the offering period — ensuring that if an investor's wire fails, the SBLC is drawn to guarantee settlement and token delivery.
›Issuer or BD requests SBLC from institutional investor's bank at commitment.
›SBLC held in escrow; released or drawn at closing against subscription agreement.
›Eliminates failed-settlement risk for large tranches (>$1M allocations).
›Transfer Control Registry marks allocation as "SBLC-secured" until settled.
›Post-settlement: SBLC returned to investor's bank upon confirmed token delivery.
Standard Language: The platform references the ICC Uniform Customs and Practice for Documentary Credits (UCP 600) and ICC Publication No. 758 for standby instruments. SBLC instruments must be sent by PRIORITY SWIFT (URGENT-EXPRESS, same-day wire) and are subject to the exclusive jurisdiction of the Commercial Court of England unless the parties agree otherwise in writing.
DIGau comparison: what changes with the platform
Using DIGau as the reference case, here is what the reserve proof layer adds to each dimension of the collateral story.
The documentation room
Every offering maintains a structured documentation room with controlled access, versioned documents, and auditable delivery trails.
Offering memorandum
Subscription agreements
Pledge / collateral documentation
Custodian confirmations
Assay / appraisal reports
UCC filing evidence
Title / deed records
Independent audit reports
Investor qualification records
Transfer restriction notices
Distribution records
Regulatory filings